Embattled Lakewood rabbi steps down from controversial school

The
School for Children with Hidden Intelligence on Oak Street in Lakewood
was founded and ran by Rabbi Osher Eisemann. On Tuesday, he announced he
was stepping down as director.
(NJ Advance Media file photo)

LAKEWOOD--The founder and director of
a Lakewood school for children with special needs has stepped down from
the institution, months after he was indicted on charges of stealing
more than $630,000 in public money from the school.

"It is with sincere regret that I voluntarily will take a leave of
absence from the institution to which I have devoted my life for over 22
years," Eisemann said in a statement. "Regrettably, baseless
allegations made against me have resulted in this decision."

According to the state attorney general's office, Eisemann is accused
of using a fundraising foundation, Services for Hidden Intelligence, to
siphon $430,000 in operating funds from the school to invest in the
now-defunct clothing company, known as TAZ Apparel, LLC.

He is also accused of transferring another $200,000 belonging to the
school through a series of bank accounts into a personal account and
then back into the school's coffers "to create the false appearance that
he was using personal funds from independent sources to repay debts he
owed to the school."

Eisemann
pleaded not guilty in April to the charges against him and had
previously indicated that he would remain in charge of the school, which
he founded in a Lakewood strip mall in 1995. It has since moved to a
modern, multi-building campus on Oak Street and enrolls hundreds of
children.

SCHI (pronounced "shy") is regarded as one of the prominent private
special-education schools in New Jersey and it's also one of the most
expensive.

With Eisemann stepping down, James Delaney, SCHI's principal, will take over as interim director.

"Even though Director Eisemann has not been accused by the state
attorney general of appropriating SCHI funds for personal use, Director
Eisemann has once again put the interests of our students first so that
the school may move on from these scurrilous allegations," Delaney said
in a statement.

Eisemann's decision to step down comes as his legal battle is ramping
up. Last week, Eisemann's attorney asked the state to throw out the
evidence against the rabbi found when the state raided six locations in
the Lakewood area in 2016.

"I
think they have real issues here," said Lee Vartan, Eisemann's
attorney, about the evidence collected in those searches. Vartan says
the search warrants were too general and they allege wrongdoing they say
happened years ago.

The state is expected to respond to Vartan's motion to suppress the
evidence on Sept. 8. The motion and the state's response will be heard
in state Superior Court in Middlesex County on Sept. 29.

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